Rahul bought an air cooler for 3300 including a tax of 10%. Find the p...
Let the cost of air cooler before VAT added be Rs x
VAT = 10% of x = 0.1x
Cost after VAT added = x + 0.1x = 1.1x
But given cost = Rs 3300
1.1x = 3300
x = 3300/1.1
x = 3000
Price of the cooler before VAT added = Rs 3000
Rahul bought an air cooler for 3300 including a tax of 10%. Find the p...
Price of the air cooler before VAT:
To find the price of the air cooler before VAT, we need to subtract the tax amount from the total price.
Given:
Total price of the air cooler including VAT = $3300
Tax rate = 10%
Calculating the tax amount:
To calculate the tax amount, we need to find 10% of the total price. We can do this by multiplying the total price by 10% (0.10).
Tax amount = 3300 * 0.10 = $330
Calculating the price before VAT:
To find the price before VAT, we need to subtract the tax amount from the total price.
Price before VAT = Total price - Tax amount
Price before VAT = 3300 - 330
Price before VAT = $2970
Therefore, the price of the air cooler before VAT was added is $2970.
Sales Tax and VAT:
Sales Tax and VAT (Value Added Tax) are both types of consumption taxes imposed on goods and services. They are typically added to the selling price of a product or service and collected by the government.
Sales Tax:
Sales tax is a tax imposed on the sale of goods and services at the point of purchase. It is usually a fixed percentage of the selling price and is collected by the seller. The seller then remits the tax amount to the government. Sales tax rates vary from country to country and sometimes even within different regions of the same country. In some cases, sales tax may be exempted for certain essential items or have reduced rates for specific goods or services.
VAT (Value Added Tax):
VAT, also known as Goods and Services Tax (GST) in some countries, is a type of consumption tax that is added at each stage of the supply chain. Unlike sales tax, VAT is collected at every point of sale, including the manufacturing, distribution, and retail stages. This ensures that the tax is imposed on the value added at each stage of production. VAT rates also vary from country to country and may differ depending on the type of goods or services being sold.
Both sales tax and VAT are indirect taxes, meaning they are not directly paid by the consumer but are included in the selling price of the product or service. The tax amount collected is then passed on to the government by the seller. The revenue generated from sales tax and VAT is used by the government to fund public services and infrastructure projects.
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